The Prevailing Quota Premium, or PQP, is one of the biggest numbers to understand when buying a car close to COE expiry. It determines the renewal amount, so a body-price bargain should always be reviewed alongside the applicable PQP for COE renewal in Singapore.
What is PQP?
PQP is the moving average of Quota Premium results for a vehicle category over the relevant bidding exercises. LTA publishes the applicable rates. The amount used for renewal depends on the vehicle category and the renewal timing.
Because PQP changes, an old advertisement or screenshot should never be treated as a final renewal quote.
Five-year versus ten-year cost
For Category A and B cars, a five-year renewal requires 50% of the applicable PQP. A ten-year renewal requires the full PQP. The five-year option lowers the immediate commitment but can be chosen only once for these car categories, after which the vehicle must be deregistered.
A ten-year renewal costs more upfront but provides a longer period and may allow further ten-year renewals for cars without a statutory lifespan, subject to future rules and rates.
When should the COE be renewed?
LTA permits renewal before expiry and provides rules on which PQP applies. Late renewal can involve additional consequences and the vehicle cannot be used without valid registration. Buyers should confirm the exact expiry date and intended completion timeline before making payment.
Build a realistic budget
- Confirm the vehicle’s COE category and expiry date.
- Check the official applicable PQP.
- Select a five-year or ten-year ownership plan.
- Add the body price and transfer/admin charges.
- Add insurance, road tax, inspection and towing where relevant.
- Include immediate servicing and a repair reserve.
Spread the total across the months you genuinely expect to own the vehicle. This provides a more useful comparison than looking only at the renewal cheque.
Stress-test the decision
Ask what happens if the car needs a major transmission, cooling-system or electronic repair in year one. Then compare the total commitment with a newer vehicle that has remaining COE. The cheapest purchase price is not always the lowest-cost ownership decision.
Verify before payment
Official PQP rates and renewal requirements are available on LTA OneMotoring. Check the applicable amount again immediately before the transaction because timing can affect the figure.
FATCAR advertises body prices separately when COE/PQP renewal is not included. Contact us for the current vehicle details and a quotation that clearly identifies exclusions.